Arafura Resources Ltd (ASX:ARU) (OTCMKTS:ARAFF) (FRA:REB) has committed to the sustainable supply of neodymium-praseodymium (NdPr) for global customers from the Nolans Project by applying for membership of the UN Global Compact and Initiative for Responsible Mining Assurance (IRMA).
The company is adopting a series of standards, targets and aspirations, culminating in the release of an up-to-date sustainability report on its world-class 100%-owned Nolans NdPr Project in the Northern Territory of Australia.
A mineral lease application has been submitted for the future installation of a solar farm to offset gas usage and reduce greenhouse gas emissions as part of program to align Arafura with the Paris Agreement targeting net zero emissions by 2050.
A comprehensive up-to-date sustainability report is being prepared.
“Striving to leave world a better place"
Managing director Gavin Lockyer said: “Commitment to the sustainable development and operation of Nolans is a core principle and goal of the Arafura board of directors, our shareholders and all our employees.
“This first step represents our commitment to an unending journey of striving to leave the world a better place than before we started.”
The Nolans Project is a 'mine to oxide' project located on a single site in a jurisdiction with a strong regulatory framework and where all potential environmental issues are required to be fully investigated, managed and costed into all planning.
However, global external governance provides a further layer of oversight across the full range of activities and issues recognised by the company’s customers and international stakeholders.
UN Global Compact aims to accelerate and scale the collective global impact of business through its Ten Principles in the areas of human rights, labour, the environment and anti-corruption and to take action on the issues embodied in the 17 UN Sustainable Development Goals (SDGs).
As a member of the UN Global Compact, the company would be required to complete detailed reporting against the governing principles and UN SDGs.
ESG commitment
The company has set itself the following goal:
- “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined rare earth products, helping our customers deliver clean and efficient technologies.
- “We are committed to delivering positive intergenerational economic, environmental and social benefits to our stakeholders.”
The first step in achieving this goal was to map and assess Arafura’s key material issues and their importance to the company’s stakeholder group.
As it strives to meet its sustainability goal, Arafura will initially focus on:
- Greenhouse gas emissions and climate change;
- Water consumption and management;
- Management of wastes and hazardous materials;
- Health and safety of employees;
- Indigenous people and local participation;
- Supply chain management;
- Diversity and employee engagement;
- Governance, ethics and transparency; and
- Economic viability and sustainability.
Climate change
Climate change and greenhouse gas emissions are a critical global issue and in consideration of this, Arafura is committed to the ongoing development and operation of Nolans with the aim of achieving net zero carbon emissions by 2050.
As part of this commitment, Arafura has completed an independent greenhouse gas emissions audit of the proposed operation and is working with external consultants to develop greenhouse gas emission reduction strategies and goals toward reaching net zero by 2050.
An important first step in this carbon reduction journey has been made through the application for an ancillary mineral lease (MLA 32722) close to the process plant site for the construction of a substantial solar farm to offset power production from natural gas.
Further planning and design of this green power facility, and other similar measures, will be outlined in the greenhouse gas emissions reduction study that is currently underway.
This study will also set interim targets on Arafura’s journey toward net zero carbon emissions.
Sustainability reporting
Working with Futureproof Consulting, a specialist sustainability consultant, the Company is currently in the process of developing an up-to-date sustainability report.
This comprehensive report will provide detailed communication on material ESG issues identified above along with considered actions plans, targets and aspirations across short, medium and long-term timeframes.
It is anticipated that this sustainability report will be made available publicly in mid-2021 and updated on an annual basis to provide transparency to all stakeholders on Arafura's progress and performance.